WhiteCross/NARUS IBI Solutions usage pattern analysis

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    WhiteCross/NARUSIBI Solutions

    usage patternanalysis

    Capturing and understanding subscriber usage patterns is

    fundamental to the success of an IPSPs business. To

    maximize profitability, IPSPs must attract, manage, and

    maintain customers that fit best with the business model the

    IPSP employs. In other words, an IPSPs business model will

    dictate the usage profile of the most profitable subscribers.

    a w h i t e c r o s s w h i t e p a p e r

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    7

    table of contents

    1 WhiteCross/NARUS IBI Solut ions WhiteCross

    6

    5

    4

    32

    1executive summary 2introduction 3

    the business advantage of 4

    usage pattern analysisbilling 4

    churn management 5

    new service offerings 5

    acceptable use policy setting, monitoring and fraud detection 5

    summary 6

    characteristics of an effective 7UPA solution

    data collection 7

    data analysis and transformation 7

    information presentation and delivery 7

    WX/NARUS UPA solution 8NAR US IBI platform data collection and session reconstruction 8

    WhiteCross servers (WXD ES) data analysis and transformation 9

    WhiteCross and NARUS solutions information presentation 9

    summary 12

    appendix: WX/NARUS ASP 13

    delivery services

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    1executive summary

    As fewer new customers sign up for IP services, Internet

    Protocol Service Providers (IPSPs) will have to shift focus

    away from simply capturing a fair share of new subscribers

    to managing and capitalizing on existing customers by offer-

    ing new billing plans and differentiated services, reducing

    and managing subscriber churn, and setting and enforcing

    acceptable usage policies. Little, however, has been spent

    implementing the Internet Business Infrastructure (IBI) need-

    ed to support this shift.

    Fundamental to all IBI solutions is an understanding of

    subscriber usage of IP services through Usage Pattern

    Analysis (UPA). UPA is the analysis of subscriber usage

    information captured at the application layer, combined with

    offline data such as user demographics, billing data, and

    customer service interaction to create service and subscriber

    usage profiles.

    By understanding service and subscriber usage profiles,

    IPSPs can make more informed and effective decisions

    regarding major IBI concerns such as billing, churn manage-ment, new service offerings, and acceptable use policies and

    enforcement.

    The elements of an effective UPA solution include data

    collection, data analysis and transformation, and information

    presentation and delivery. The data collection platform needs

    to capture detailed information that completely characterizes

    the applications and services used and the quality of the

    users experience. The data analysis platform must correlate

    this information with offline data sources such as user demo-

    graphics, billing data, and customer support history and pro-

    vide a data analysis capability that is flexible, scalable, and

    powerful enough to handle large volumes of data quickly (for

    train of thought analyses). Finally, the UPA solution must

    present and deliver the results as actionable information; that

    is, the solution must present answers, not just more data for

    the user to analyze.

    NARUS and WhiteCross have partnered to deliver

    unique IBI solutions by leveraging core capabilities from

    both companies.The result of the partnership is a suite of

    business intelligence applications and services through

    which IPSPs can understand their customers usage pat-

    terns, and use that knowledge to prepare, implement and

    monitor the success of new services and billing plans, man-

    age customer churn, set and enforce usage policies, and

    increase overall profitability.

    The NARUS and WhiteCross solution is based on the

    NARUS IBI Platform and the WhiteCross Data Exploration

    Server (WX/DES). The NARUS IBI Platform captures appli-

    cation-level subscriber usage information directly off high-speed networks, in real-time. The WX/DES provides a scal-

    able platform with the power to perform rapid analysis of

    large volumes of usage data at the speed of thought. The

    resulting Usage Pattern Analysis (UPA) solutions are offered

    through a service bureau. The solutions and services include

    an out-of-the-box solution, project-based services, and on-

    going, continuous custom reporting and analytic services.

    The result is a unique set of tools that enable IP service

    providers to manage their businesses and keep up with the

    fast-moving pace of the IP services market.

    WhiteCross WhiteCross/NARUS IBI Solut ions 2

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    2

    3 WhiteCross/NARUS IBI Solut ions WhiteCross

    introduction

    Until recently, IPSPs have focused almost exclusively on

    building out their physical infrastructure. As more and more

    individuals and businesses flocked to the Internet, IPSPs

    focused on adding capacity, increasing bandwidth, and rush-

    ing into new geographic areas. Services were undifferentiat-

    ed, and the industry took a one size fits all approach to

    pricing and bundling of services.

    The environment in which IPSPs operate, however, is

    changing dramatically:

    s As fewer new customers sign up for IP services, and as

    the market for IP service providers becomes saturated,

    IPSPs are forced to shift their focus away from simply

    capturing a fair share of new customers. Instead, they

    have to actually steal share away from competitors.

    s As new players enter the market with new business

    models, no IPSP can afford to offer the same, undiffer-

    entiated services. Instead, they must possess a dynam-

    ic understanding of what services subscribers want andhow much they are willing to pay for those services.

    s As more and more mission-critical systems are

    deployed across IP networks, IPSPs cannot afford to

    offer one grade of best effort service. Instead, IPSPs

    will have to offer quality of service (QoS) and delivery

    options to meet the different needs of different sub-

    scribers.

    s IPSPs business problems can no longer be solved by

    simply throwing additional bandwidth on the network.

    Instead, IPSPs must be able to identify new business

    models, new markets, and new service bundles to offer

    subscribers.

    In other words, the focus of the IPSP market is shifting

    away from the physical infrastructure towards the Internet

    Business Infrastructure (IBI).

    IBI is the set of capabilities that enable IP service

    providers to manage customers, services, and business

    models. IBI tools allow IPSPs to define and deploy new ser-

    vices, offer flexible and differentiated billing options, provide

    proactive customer care, detect and defeat fraud, and man-

    age customer churn. Figure 1 illustrates how IBI solutions

    allow ISPs to increase profitability.

    Fundamental to all IBI tools is an understanding of sub-

    scriber usage of IP services through Usage Pattern Analysis

    (UPA). UPA is the analysis of subscriber usage information

    captured at the application layer, combined with offline data

    such as user demographics, billing data, and customer ser-

    vice interaction.

    This white paper discusses the importance of UPA to

    IPSPs who want to differentiate their services in the highly

    competitive market for providing IP services to consumers

    and businesses. It describes why UPA is critical to under-

    standing customers needs and their satisfaction with current

    IP service offerings. It also describes why business models

    based on Usage Pattern Analysis are essential for driving

    profitable growth in the areas of customer acquisition and

    retention. Finally, it describes how the WhiteCross-NARUS

    UPA solutions deliver an especially efficient and effective IBI

    solution.

    Figure 1 IBI Solutions

    Customerand Services

    Profiling

    ServiceDefinition

    ProfitabilityAnalysis

    Billing CUSTOMERUSAGE DATA

    ChurnManagement

    Provisioning

    FraudDetection

    CustomerCare

    EZYLANA

    TNEMELPMIDNA

    NGI

    SE

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    AVERUTPAC

    EGANAM

    EGDELWONK

    EGDELWONK

    Identify and Drive Opportunities

    Reapthe

    Rewards

    Defineand

    DeliverServices

    Efficiently and Effectively ManageCustomers and Services

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    3the business value of usagepattern analysis

    Capturing and understanding subscriber usage patterns

    is fundamental to the success of an IPSPs business. The

    value of a subscriber to an IPSP is directly correlated to the

    subscribers usage of the network and services offered by

    the IPSP. To maximize profitability, IPSPs must attract, man-

    age, and maintain customers that fit best with the business

    model the IPSP employs. In other words, an IPSPs business

    model will dictate the usage profile of the most profitable

    subscribers; it also has the effect of dictating the usage pro-

    file of the most costly subscribers. By understanding these

    usage profiles, IPSPs can make more informed and effective

    decisions regarding major IBI concerns such as billing, churn

    management, new service offerings, and acceptable use

    policies and enforcement.

    BILLING

    As stated in the introduction, many IPSPs have employed

    the same business model to date: flat rate, one-service-fits-

    all model. So, while segmentation exists among accessproviders in the form of wholesale vs. retail, dial-up vs.

    broadband, consumer vs. business, the same model is gen-

    erally used for all segments: flat-rate, best-effort access to

    the entire (and identical) set of IP services. Today, IPSPs

    offering differentiated services are the exception, not the

    rule.

    As the market becomes increasingly saturated and corre-

    spondingly more competitive, IPSPs are looking to use new

    and creative billing plans as a competitive advantage.

    Residential customers are starting to ask IPSPs why they

    should pay $19.95 or more per month when all they use is

    email and the web. Business clients want to know if the IPSP

    can offer higher quality of service for certain applications like

    video conferencing over IP.

    A major barrier to implementation of usage-based billing

    is the fear of the unknown. Specifically, without an under-

    standing of the current customer base, it is impossible to pre-

    dict the possible uptake and impact of different billing plans.

    As such, the key to effectively implementing usage-based

    billing lies in Usage Pattern Analysis. With UPA, an IPSP

    can, for example, understand which IP services are most

    accepted across the user base. IPSPs can analyze new

    billing plans using actual subscriber usage data to gauge

    potential revenues from the new billing plan compared to the

    old one. After implementing usage-based billing, UPA allows

    the IPSP to monitor the effects of new billing plans on sub-

    scribers service usage, which in turn allows the IPSP to fur-

    ther refine billing plans.

    Figure 2 below is and example of a NARUS Intelligence

    report that shows the distribution of average web traffic gener-

    ated across percentile ranges of active web users. It is useful

    for IPSPs that are analyzing current flat-rate models in anticipa-

    WhiteCross WhiteCross/NARUS IBI Solut ions 4

    Mbytes

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    36

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    01.0 2.0 3.0 4.0

    Percentile Range of Active Subs

    Traffic (Mbytes)

    Figure 2 Web Traffic Distribution

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    Percentile Range of Active Subs

    Traffic (Mbytes)

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    5 WhiteCross/NARUS IBI Solut ions WhiteCross

    tion of moving to a usage-based model. The report is broken

    out into two charts. The first chart shows the top 5% of users.

    The second chart shows the bottom 95%. In this example, the

    report shows that the top 4% of web users generated at least

    10 megabytes of traffic per user. It also shows that users in the

    top 5% range generate eight times as much web traffic (per

    user) as users in the bottom 50%. If the IPSP was using a flat

    rate billing model, this report could be used to identify this top

    5% as the "costliest" segment of subscribers.This report also

    provides critical input for creating new, usage-based billing

    plans by showing IPSPs how service usage is distributed

    across the active subscriber base. That is, this report identifies

    the extent to which different segments of active subscribers are

    using the service.

    CHURN MANAGEMENT

    A second challenge is protecting high-value customers

    from competitors i.e. customer retention. Customers rarely

    register their dissatisfaction with a service directly, preferring

    to express it through a more indirect and costly mechanism,

    i.e. by switching to a competitor. Churn is one of the costliest

    problems faced by IPSPs today. Many IPSPs give it scant

    consideration, preferring instead to replace lost customers

    through enticements (lower flat-rate prices) or mergers andacquisitions. As the market moves towards saturation, how-

    ever, these methods will prove ever more costly experi-

    ence shows that once high-value customers are lost, they

    are expensive to replace or entice back. Highest profits con-

    tinue to be earned from existing customers who prefer to

    remain with their current service provider subject to careful

    management of their inertial hurdle the level at which their

    dissatisfaction overrides their resistance to change.

    Fortunately, customer dissatisfaction shows up early in

    usage. Careful UPA will highlight subtle changes in customer

    behavior and potential dissatisfaction with services reduced

    session frequency, shorter sessions, and other changes in the

    usage profile all indicate potential dissatisfaction. The answer to

    the churn problem is in the detail; monitoring detailed usage

    activity provides IP service providers the vehicle for designing

    truly proactive customer responses.

    NEW SERVICE OFFERINGS

    By offering value-added services, IPSPs can attract newcustomers, increase profitability, and reduce churn. UPA pro-

    vides an ideal means for understanding new trends in IP ser-

    vices and content. By carefully monitoring where subscribers

    are going on the web, what content they are downloading,

    and what services they are using, an IPSP can determine

    which value-added services or new content to offer.

    For example, nearly every IPSP offers a home page to its

    subscribers, generally consisting of a links page, a search

    engine, news and weather reports, and e-commerce offer-

    ings. With UPA, the services and offerings on these home

    pages can be much more complete, effective, and targeted.

    Consider a case in which an IPSP using UPA discovers that

    streaming news video usage is trending upwards across the

    user base. The IPSP may want to partner with CNN or other

    news providers to offer that coverage directly on the IPSPs

    homepage, thus keeping subscribers on the site longer and,

    ultimately, increasing advertising revenue. Additionally, the

    IPSP may see that most subscribers logged on to the net-

    work from noon to one oclock PM are browsing e-commerce

    sites. The IPSP may want to dynamically change its home-

    page content during that hour to focus primarily on its e-com-

    merce offerings before shifting back to streaming video newsclips for the 6:00 to 9:00 PM time slot. Used in this fashion,

    UPA enables an IPSP to optimize the attractiveness of its

    services across the boundaries of time, geography, and cus-

    tomer segments.

    ACCEPTABLE USE POLICY SETTING

    MONITORING AND FRAUD DETECTION

    An additional way that IPSPs can manage customers and

    profitability is by setting, monitoring, and enforcing accept-

    able use policies regarding email spam, account fraud,

    home-based servers, etc.

    One such policy concerns outgoing email usage. Spam,

    or unsolicited commercial email, is at best a nuisance for

    users and at worst, a serious liability that consumes network

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    resources and can accelerate churn. With an effective UPA

    solution, potential spammers are more easily identifiable

    through statistical analysis of current and historic email

    usage of the potential violators.

    A second example is home server usage. Particularly on

    broadband residential IP networks, subscribers that are only

    paying for Internet access may be hosting servers, a direct

    violation of the service agreement. Through proper monitor-

    ing using UPA, an IPSP has a much greater chance of identi-

    fying these policy violators and either charging them for the

    hosting service or terminating their service agreement.

    Figure 3 is another example of a NARUS Intelligence report

    that can be used to help detect fraud.This report identifies the

    extent of potential account fraud by showing the percentage of

    users with simultaneous logins.The report identifies the per-

    centage of users who potentially gave out their personal

    account name and password to others.

    An IPSP can use this report to understand the scope of

    account fraud, and then use the NI report that identifies

    these users (along with that users total connection time,

    maximum number of simultaneous logins, and total traffic

    generated in terms of megabytes) to cut down on this type of

    fraud. By identifying these users and taking action, the IPSP

    can reduce costs and free up resources for other, legitimate

    users.

    SUMMARY

    An effective Usage Pattern Analysis solution provides the

    insight and actionable information needed to implement and

    manage new and creative billing plans, new and better ser-

    vice offerings, improved churn management systems and

    policies, and enforceable acceptable-usage policies.

    WhiteCross WhiteCross/NARUS IBI Solut ions 6

    11%

    89%

    Simultaneous Segment Number of UsersUsers with No Simultaneous Logins 11,856

    Users with Simultaneous Logins 1,450

    Figure 3 Simultaneous Logins

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    7 WhiteCross/NARUS IBI Solut ions WhiteCross

    This section describes the characteristics of an effective

    UPA Solution. The major areas of consideration include data

    collection, data analysis and transformation, and information

    presentation and delivery.

    DATA COLLECTION

    An effective UPA solution is built on a foundation of a

    robust, scalable, and complete data collection methodology.

    The solution must capture subscribers detailed network

    usage at the application level (layer 7 of the OSI Model) to

    completely characterize the applications and services used

    and the quality of the users experience. This data collection

    must be scalable to meet the needs of even the largest

    IPSPs, and, since UPA is the foundation of all IBI solutions,

    data collection must be revenue-grade: All applications and

    services must be visible, and no data can be lost.

    DATA ANALYSIS AND TRANSFORMATION

    Once data is collected, it must be correlated with off-line

    data such as user demographics, billing data and customer

    support history. By filtering, aggregating, and statistically

    analyzing the data, it is transformed from its raw form into

    meaningful business knowledge, upon which an IPSP can

    effectively implement IBI solutions, introduce and enforce

    effective policies, and offer new, value-added services.

    An effective UPA solution is flexible, scalable, and robust.

    It must be able to accept a variety of data sources, including

    real-time data drawn directly from the network, batch infor-

    mation drawn from application servers, gateways, and other

    devices, and offline sources such as account histories, billing

    databases, demographic data, etc. Since users are often per-

    forming train of thought analyses, the UPA Solution must be

    able to process and store tremendous volumes of data with

    minimal lag time.

    To better understand the issues an effective UPA solution

    must overcome, consider an IPSP with 100,000 residential

    broadband subscribers. Assume that each subscriber is

    actively engaged on the network for one hour per day, and

    assume that each generates 120 records per day (records

    per day can vary dramatically depending on the granularity of

    data captured; 120 records per day is an average number of

    records). This means that the subscribers on the IPSPs net-

    work will generate 12,000,000 records per day. To work with

    60 days of IP data, the IPSP would need a UPA solution that

    could handle 720,000,000 records in a timely fashion. This is

    a conservative estimate; by changing just a few assumptions,

    the numbers of records are counted in billions.

    INFORMATION PRESENTATION

    AND DELIVERY

    The final key to an effective UPA solution is the presenta-

    tion and delivery of actionable business information. An

    effective UPA solution offers two broad choices to the user:

    predefined reports and analyses that can be used out of the

    box to enable rapid characterization of broad patterns, or

    custom reporting and analyses that support directed inquiry

    once the basic patterns have been characterized.

    Predefined reports provide a range of basic statistics on

    user and service traffic across time, geography and users.

    Custom reporting and analyses can combine this information

    with user demographics, billing data and customer support

    history to analyze the potential of new billing plans, price

    changes, and new products. Alternatively, the data can be

    subjected to directed inquiry to highlight potential misuse of

    services or to predict churn.

    4characteristics of aneffective UPA solution

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    The WhiteCross/NARUS UPA Solution is a multi-level solu-

    tion based on the following:

    s The NARUS IBI Platform for usage data collection

    s The WX/DES engine for high-performance analytical

    processing

    s Powerful applications for manipulating and viewing

    analytic information

    The power of the WhiteCross/NARUS UPA Solution means that

    it scales to millions of subscribers creating billions of events,

    with average report generation time measured in seconds, not

    minutes or hours.

    NARUS IBI PLATFORM DATA COLLECTION

    AND SESSION RECONSTRUCTION

    NARUS performs usage data collection using several

    technologies. The most unique is NARUS Semantic Traffic

    Analysis (STA), which extracts usage data directly from high-

    speed carrier networks. NARUS Analyzers provide a physical

    interface to the network to monitor the data stream and

    parse each packet to extract packet header and payload

    information in order to reconstruct user sessions in real-time.

    The Analyzers extract information identifying the user, the

    application (e.g. web browsing, messaging, streaming media,

    IP telephony) and the content (URL, email, video, multi-point

    conference) of each session. The Analyzers are non-intru-

    sive, passive devices that process traffic without introducing

    any latency or impacting network throughput. They are typi-

    cally installed at major traffic collection points within a

    providers network, i.e. at primary points of presence (POPs).

    Data from NARUS Analyzers can be easily supplemented

    with data from network and application devices using

    NARUS Virtual Analyzers. The Virtual Analyzers interface

    with network devices (e.g. routers, switches, gateways) and

    application devices (servers) and gather information using

    industry standard or vendor proprietary methods. Virtual

    Analyzers are available for collecting data from a wide range

    of devices and techniques including SNMP; log files, Cisco

    NetFlow, and others.

    Applying business rules to the data from STA and Virtual

    Analyzers, NARUS LogicServers turn network-level events

    into events that have meaning in terms of a service

    providers offerings. For example, a streaming media session

    might generate records that record the total elapsed time, or

    the number of bytes transferred, or simply the fact that a spe-

    cific piece of content was accessed. With the flexibility to

    apply different business rules, these real-time aggregators

    can process the same stream of events in different ways to

    meet the needs of different applications, such as fraud detec-

    tion, policy monitoring or billing.

    Feeding this stream of events to a WhiteCross Data

    Exploration Server (WX/DES) provides IP service providers a

    potent weapon for analyzing, understanding and managing

    customers and networks in broadband environments.

    WhiteCross WhiteCross/NARUS IBI Solut ions 8

    5WhiteCross/NARUS UPA solution

    Figure 4 WhiteCross/NARUS UPA Solution

    NARUS Analyzers

    NARUS Logic Servers

    NARUS API

    WhiteCross Data Exploration Server

    NARUSIntelligence

    WhiteCross

    EasyStart

    WhiteCross

    Xcellerate

    WhiteCross

    ReportingService

    WhiteCross

    AnalyticalServices

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    9 WhiteCross/NARUS IBI Solut ions WhiteCross

    WHITECROSS SERVERS (WX/DES) DATA

    ANALYSIS AND TRANSFORMATION

    At the heart of the WhiteCross/NARUS UPA Solution is

    the WX/DES. The WX/DES is a linearly scalable server

    architecture providing in-memory processing of large vol-

    umes of data from gigabytes to terabytes. As well as phe-

    nomenal processing speed, the WX/DES architecture is

    designed to minimize the amount of effort spent on database

    design and management concurrent loading and analysis,

    support for fast, complex joins, and optimized processing of

    highly complex queries without the use of indexes all of

    which makes the WX/DES a simple data independent, load-

    and-go environment.

    WX/DES provides a truly scalable platform with the power

    to perform rapid analysis of large volumes of IP data at the

    speed of thought. It is already used, for example, by telecom-

    munication companies to analyze call detail records and by

    ISPs to analyze web logs.

    The WX/DES has the proven power to:

    s Perform train-of-thought analysis (unconstrained ad

    hoc exploration) of large volumes of IP data it scales

    to billions of rows/second

    s Handle complex joins between different data sources

    e.g. IP data, lifestyle and billing data, input from CRM

    systems and third-party feeds

    s React rapidly to changes in analysis needs by quickly

    adding new or additional data and making the resulting

    data ensemble analysis-ready through a concurrent

    load & go approach to the process of data ETL

    (Extraction, Transformation and Loading).

    Combined with WhiteCross extensive exploration suite,

    ExplorationSTUDIO, the WX/DES provides powerful, applica-

    tion-based business intelligence (reporting, exploration and

    mining) for sophisticated predictive behavior modeling. It has

    the proven capability to analyze usage patterns to the finest

    level of detail across thousands of services, millions of cus-

    tomers and billions of events.

    WHITECROSS AND NARUS SOLUTIONS

    INFORMATION PRESENTATION

    NARUS and WhiteCross have teamed to make it espe-

    cially easy for IPSPs to benefit from UPA without having to

    make significant upfront investments in IT infrastructure and

    staff. The WhiteCross/NARUS (WX/NARUS) ASP Services

    provide a range of UPA services on a hosted basis, providing

    24 hour, 7 days a week access to comprehensive reports

    from anywhere in the world.

    Services are provided that enable clients to benefit from

    both WhiteCross and NARUS technology, tools, skills, and

    experience, without the capital investment normally required

    to build a similar system in-house. WX/NARUS ASP Services

    offer a range of business intelligence services to suit a

    clients needs including standard reporting, custom report

    development, and behavioral modeling. WX/NARUS ASP

    Services are entirely scalable to the needs of the business

    and completely secure. Each service can be delivered direct-

    ly to the business unit that needs them via frequent reportsor via interactive models accessible across a company s

    Intranet. Current services offered include:

    NARUS Intelligence 2.0

    NARUS Intelligence 2.0 (NI 2.0) provides a comprehen-

    sive set of predefined reports to IPSPs showing summary

    information in aggregate and across services (web browsing,

    email, streaming media, etc.), over time, across the sub-

    scriber base, and by geographic area.

    Figure 5 is an example report showing the kind of summary

    information provided by NI 2.0. Using this report, an IPSP can

    understand the relative value of services by comparing the per-

    cent of active users of a service to the percent of total traffic

    accounted for by that service.

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    In this example, newsgroups traffic and streaming traffic

    are equal (15%), but twice as many users utilize streaming

    audio (30%) as utilize newsgroups (15%). Additionally, email

    traffic (10%) accounts for a smaller percentage of total traffic

    than either, yet 85% of active subscribers use the service.

    With an understanding of the value of a service relative to

    other services, the IPSP executive can move on to the set of

    reports available for that service. These reports will show

    how usage of that service is distributed over the subscriber

    base, how it varies over time or by region, and (in the case of

    web browsing and streaming audio and video) where users

    are going for content.

    WX/Reporting Services (WX/RS)

    WX/RS is an on-going service designed to deliver regular

    tailored reports, models, or analyses to IPSPs. Typical areas

    covered:

    s Usage Reporting These reports determine which

    activities customers are interested in, which informa-

    tion, applications, and services get their attention, andwhere they find the most value in service offerings.

    They are designed to provide the information needed

    to optimize pricing models and shift to value-based

    pricing. Usage Reports provide information on services

    that customers are using (e.g. email, web browsing, file

    transfer, streaming media), the amount of bandwidth

    they are consuming, and the quality of service they are

    experiencing. They also identify the most active users

    e.g. show usage patterns for the top X% of active

    users, broken out by service.

    s Segmentation Reporting These reports are designed

    to improve targeting of customers and services. The

    reports identify significant groups by geographic region,

    access type, bandwidth consumption, etc. and identify

    strong correlations between services usage. Combined

    with Usage Reports and creative billing plans, segmenta-tion reporting allows an IPSP to truly differentiate ser-

    vices and offer the most effective, targeted billing plans to

    subscribers. Figure 7 shows a decision tree extracted from

    an investigation looking at attributes that are common to

    people who shop at a website.

    WhiteCross WhiteCross/NARUS IBI Solut ions 10

    Percent

    Service

    Video Conferencing

    VoIP

    Web Browsing

    Streaming Video

    Streaming Audio

    News Groups

    File Transfer

    Email

    0 30 60 90

    Percent of Total Traffic Percent of Active Users

    Service Email File News Streaming Streaming Web VoIP VideoTransfer Groups Audio Video Browsing Conferencing

    Percent ofTotal Traffic 10 8 15 15 5 40 5 2

    Percent ofActive Users 85 10 10 30 15 90 5 1

    Figure 5 User and Traffic Profile by Service

    N ( 31 8, 12 7) 2 9. 4%Y ( 76 2, 65 1) 7 0. 6%Total 1,080,778 32.5%

    N (2,212,492)66 .4%Y (1,117,572)33 .6%Total 3,330,064

    N (18, 409) 28. 8%Y (45, 423) 71. 2%Tota l 63 ,082 1 .9%

    N ( 27 7, 79 3) 3 4. 6%Y ( 52 4, 23 5) 6 5. 4%Total 802,028 24.1%

    Type DType A

    SEGMENT

    Type CType B

    FOOD_DRINK

    ASTROLOGIST

    GENDER HEALTH FITNESS INCOME FOOD_DRINK

    GENDER GAMBLER TECHIE ACCESS

    GENDER

    NYYN

    Y N F M

    N (1,894,365)84 .2%Y ( 35 4, 92 1) 1 5. 8%Total 2,249,286 67.5%

    N (2,848) 61.8%Y (1,758) 38.2%Tot al 4, 606 0. 1%

    N (75,765) 9 4.1%Y (4,721) 5.9%To ta l 8 0, 48 6 2 .4 %

    N (1,537,370)87 .8%Y ( 21 3, 83 8) 1 2. 2%Total 1,751,208 52.6%

    N (78,613) 92.4%Y (6,479) 7.6%To ta l 8 5, 09 2 2 .6 %

    N ( 278, 38 2) 6 7. 4%Y ( 134, 60 4) 3 2. 6%Total 412,986 12.4%

    N (40,334) 14.5%Y ( 23 8, 41 6) 8 5. 5%Total 278,750 8.4%

    N (21,925) 10.2%Y ( 19 2, 99 3) 8 9. 8%Total 214,918 6.5%

    Figure 7 Automated Segmentation Analysis

    200,000

    150,000

    100,000

    50,000

    0

    Hour

    0 2 4 68 1

    0 12 1

    416

    18 2

    022

    VDOLive

    KERBEROS

    IMSPSMTP

    TCP

    VDOLive

    NETBIOS-SSN

    TELNET

    KERBEROS

    DOMAIN

    FTP

    IMSP

    IMAP2

    AUTH

    SMTP

    HTTPS

    AOL

    TCPPOP3

    HTTP

    Figure 6 Protocol Usage by Hour of Day

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    11 WhiteCross/NARUS IBI Solut ions WhiteCross

    s Customer Profiling These reports are designed to

    score customers according to their value to the compa-

    ny. The reports identify profitable versus unprofitable

    customers, customers likely to churn, customers likely

    to commit fraud, and customers abusing acceptable

    use policies. The reports show an individual users

    behavior over a specified period (e.g., which services

    they used, when, and how much). The reports drill

    down to which services an individual user prefers, and

    which times of the week are peak times for them.

    s Content Reporting These reports are designed to

    generate important metrics for web content: popularity

    of web sites, stickiness, long-term appeal, etc. These

    reports also identify the characteristics of users using

    the sites from an analysis of data such as raw hits, hits

    by user segment, amount of time spent at site, number

    of visits over specific time periods, sites visited per ses-

    sion, pages viewed, content categories, etc. Figure 8 is

    an example report showing the daily popularity of a page

    by the hour.

    s Network Usage Reporting These reports provide

    network managers and architects with complete visibili-

    ty into their networks. They are used to assist in reduc-

    ing costs by optimizing usage of available network

    resources. The reports help diagnose potential problem

    areas within the network, optimally configure and man-

    age all aspects of network operations, and make the

    most cost-effective decisions regarding future equip-

    ment investments.

    WX/Analytical Services (WX/AS)

    WX/AS is an on-going service for proactive investigation

    of time critical business developments or changes in market

    or customer behavior. Typical areas covered:

    s Pricing These analyses measure the impact of pric-

    ing on usage behavior, assist with the development of

    models for optimization of pricing, analyze impact of re-

    pricing, measure profitability by customer/day/time/etc

    s Campaign Targeting These analyses identify key

    customer segments, analyze the impact of special

    offers, identify most/least profitable customers, and up-

    selling/cross-selling opportunities

    s Churn These analyzes build profiles of normal

    usage to predict future customer behavior and to flag

    patterns likely to predict churn, identify loyal customer

    patterns and the impact of enticements.

    PageImpressions

    1600000

    140000

    120000

    100000

    80000

    60000

    40000

    20000

    0

    Tuesday

    Wednesday

    Thursday

    Friday

    Saturday

    Sunday

    Monday

    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

    Page Impression by Day and HourAge Band 25-36

    Hours of Day

    Figure 8 Page Impressions by Day and Hour

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    13 WhiteCross/NARUS IBI Solut ions WhiteCross

    WX/NARUS ASP offers several services: one out-of-the-

    box service (NARUS Intelligence), two project-based ser-

    vices (WX/EasyStart & WX/Xcellerate) to establish the

    framework and scope of working relationships as well as

    delivering initial results, and two on-going services

    (WX/Reporting Service & WX/Analytical Service) to deliver

    results to clients in a continuous manner.

    NARUS Intelligence 2.0is an easy to deploy, out-of-the box

    reporting tool. The predefined reports contained in NARUS

    Intelligence 2.0 allow an IPSP to quickly start viewing sum-

    mary reports on network usage, both in aggregate and

    across major IP services (web browsing, email usage,

    streaming media, VoIP, etc.). The reports provide a great way

    for an IPSP to start generating and viewing information and

    as inputs into billing decisions, policy setting and monitoring,

    and service profiling.

    WX/EasyStart (WX/ES)is a project-based service for start-

    up companies or business units that require basic analysis

    and reporting. WX/ES provides clients a menu of reports andanalyses from which to choose. WX Consultants work with

    client personnel to

    1. Identify the most urgent business

    issues to be investigated.

    2. Determine appropriate data sources

    and build the initial data ensemble.

    3. Build the reports and analysis.

    Once the scope of work for the WX/ES engagement is

    complete, it is time to move into an on-going service mode,

    either via a WX/Reporting Service or a WX/Analytical Service.

    WX/Xcellerate (WX/XC) is a project-based service for

    companies with needs that are more complex or those who

    wish to expand their portfolio of analytical applications.

    WX/Xcellerate is based on WhiteCross proven Exploration

    Workshop methodology. WhiteCross facilitated workshops

    are staffed by WhiteCross and NARUS consultants who work

    with business managers to rapidly develop and interrogate

    business scenarios to identify critical opportunities and return

    high priority results. The key deliverable for extracting maxi-

    mum information value is the design and construction of an

    initial or expanded data ensembleand associated analyses

    and reports. Once the scope of work for the WX/XC engage-

    ment is complete, it is time to move into an on-going service

    mode, either via a WX/Reporting Service or a WX/Analytical

    Service.

    WX/Reporting Service (WX/RS)is an on-going, continuous

    service delivering regular reports, models or analyses to the

    client. These reports can be provided in multiple forms to suit

    specific needs for example, as hard copy, as spread-

    sheets, as OLAP cubes, as a data summary, as SQL, etc. A

    reporting service can take the form of reports or models, for

    example, of high-profit customers, customer segmentations,

    service usage, etc. Business managers can access the

    Figure 9 WX/EasyStart & WX/Xcellerate

    Process Flow

    7appendix WX/NARUS delivery

    service

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    WhiteCross WhiteCross/NARUS IBI Solut ions 14

    reports and analyses from their desktops for ad-hoc updates

    as well as receive regularly scheduled delivery of updates.

    WX/Analytical Service (WX/AS)is an on-going, continuous

    service providing the use of WX/NARUS technology and

    experts for the proactive investigation of time-critical business

    developments and changes in market or customer behavior.

    WX/NARUS provides the capability to execute complex analy-

    ses at the direction and discretion of the client or at the initia-

    tive of WX/NARUS. WX/NARUS provides a forward-looking

    competitive intelligence function through this service.

    WX/AS projects include ad-hoc analysis, data mining,

    and data exploration projects to investigate particular busi-

    ness issues or opportunities for maximizing the yield from

    customer information assets.These may be based on

    WX/NARUS existing portfolio of applications such as Churn

    or Pricing, or be custom developed to meet a clients specific

    needs. Examples include: special customer segmentation

    exercises; churn analyses, profit sensitivity to pricing

    changes, and preemptive competitive analyses.

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    388 Market Street

    Suite 1450

    San Francisco, CA 94111 USA

    Tel: 415 249 0124

    Fax: 415 908 6889

    Waterside Park

    Cookham Road

    Bracknell RG12 1RB

    United Kingdom

    Tel: 44 (0) 1344 300770

    Fax: 44 (0) 1344 301424

    [email protected]

    www.whitecross.com